Tried it again at another place and chip and PIN worked (and they let me enter the PIN too). Training is obviously a serious issue though.
@jason86423 wrote:I had the same problem recently both at Sams club and walmart. Called customer service, tried changing my pin via ATM- they had me go to 5 different Atms with no success.
Long story short, they sent me a pin reminder. Tried using it Saturday night and it said, last pin attempt... said invalid pin, even though I had the letter in hand...then it locked the chip
Called up customer service and they cancelled the current card and issued another. Supposedly were expediting it and are waiving my annual fee for all the hassle. The new card number is showing up on line, just waiting for the arrival of the new card.. Hopefully this one doesn't have any issues.
I never could get the PIN portion to work with it.
The chip itself was probably bad then. 
Hopefully you have better luck with the new card!